The 1987 Volkswagen Vanagon was essentially the same vehicle as the previous year's model, with no significant upgrades. It came with a 2.1-liter water-cooled four-cylinder engine that generated 95 horsepower. The engine used a fuel-injection system called the Digifant. A four-speed manual transmission was standard, while a three-speed automatic was optional. The rear-wheel-drive vehicle was also equipped with rack and pinion steering, power-assisted brakes, and front and rear independent suspension.

The Vanagon was available in a number of different trim packages, including the standard Vanagon L, the higher-end GL, the Vanagon Camper, and the GL Camper. A limited-edition Wolfsburg Edition was also available. It came with special bumpers and a lowered ride height, among other features.

Standard features for the Vanagon L included front bucket seats, leatherette upholstery, carpeting, tinted glass, a rear window defogger, and a padded instrument panel. The Vanagon GL added deluxe front seats and velour upholstery, among other features. Synchro all-wheel-drive was also available on certain models.

While drivers generally loved the Vanagon, citing its roominess, sportiness, and uniqueness as among its positive aspects, many offered words of caution to prospective owners, suggesting that the vehicle needed careful maintenance to prevent expensive repairs.